Strategy Eligibility & Safety Rules
Operator & jurisdiction: BASIS is operated by BASIS DIGITAL INFRASTRUCTURE LTD, a Seychelles-incorporated entity (LEI: 254900IX2F2KCWNSSS64).
Currency convention: All values shown in USDT are internal accounting and display units only, interpreted as USD-equivalent references. USDT is not a depositable or withdrawable asset on BASIS. Supported native token flows are BTC, ETH, SOL, and PAXG. See Risk Disclosure.
Eligibility rules define the mathematical boundary between executable strategy logic and unacceptable risk.
BASIS applies deterministic eligibility gates so strategies run only when:
expected value remains positive under conservative assumptions
risk constraints are satisfied
execution precision remains within defined tolerances
state machine safety conditions remain valid
1) Universal eligibility gate
A generic gate for a structural alpha capture action:
Conservative bounds include:
worst-case slippage within defined percentile
maximum fee schedule
latency penalty
safety margin for volatility
settlement reliability constraints
If the gate fails, the system does not execute.
BASIS prioritizes deterministic execution over activity volume. If mathematical constraints are not met, no action is taken.
2) Venue eligibility
A venue must satisfy all of the following:
operational health, including functioning withdrawals and stable API behavior
minimum depth thresholds
fee constraints
risk score above minimum threshold
consistent settlement behavior
routing compatibility with BASIS infrastructure
If a venue fails health checks, it is excluded even if quoted spreads appear attractive.
Large spreads often indicate hidden execution risk, settlement impairment, or unstable market conditions.
3) Asset eligibility
Assets are eligible only when:
liquidity is sufficient
manipulation risk is low
reliable pricing exists across venues
settlement constraints are manageable
inventory transfer paths remain operational
Low-liquidity assets are excluded even if they show frequent pricing gaps.
4) Safety rules (stop conditions)
Slippage inversion
If slippage cost exceeds target edge, the system:
cancels the action
may enter protective mode if inversion signals market stress
tightens execution thresholds if needed
Withdrawal halt or settlement disruption
If a major venue halts withdrawals for a relevant asset, the system:
reduces new exposure
may unwind positions dependent on settlement
may suspend affected strategy paths until normal conditions return
Abnormal price feed
If oracle or feed input is inconsistent, the system:
rejects trades
isolates affected signals
may escalate to BSCB if the condition is systemic
Infrastructure degradation
If routing, latency, or execution acknowledgment falls outside accepted bounds, the system:
stops affected actions
reroutes where possible
preserves capital over throughput
5) Why this matters for users
These safety rules explain why:
strategies may pause
reward accrual may slow temporarily
withdrawals may follow operational waiting periods depending on network and asset type
These are protective behaviors of a survivable system, not failures of system design.
Withdrawal timing depends on the asset rail:
BTC: typically 30 minutes to 1 hour
ETH / SOL / PAXG: typically 1 to 6 minutes
6) System design principle
BASIS is built around deterministic execution, mathematical constraints, and state machine risk controls.
This includes:
conservative eligibility gating
infrastructure-aware execution precision
bounded exposure logic
fail-safe halts under abnormal conditions
BHLE infrastructure supports this with:
sub-50μs latency
100K+ OPS capacity
proprietary routing infrastructure
These controls are designed to support structural alpha capture while limiting non-deterministic risk.
For the formal state model, read: Risk to BSCB and Risk to DMM.
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